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Four Major Drivers of the Gold-Silver Price Ratio
In recent months, gold prices have risen to new record highs, topping $3,500 for the first time before easing to $3,350. Silver prices have also been rising in tandem, peaking at above $37 per ounce but remaining well below its twin highs from 1980 and 2011 (Figure 1). Over time, the relative value of gold and silver as measured by their price ratio has varied amid supply growth, central bank buying, advances in technology (photography and solar panels) as well as the pace of Chinese growth. On a day-to-day basis, gold and silver prices are often highly correlated with a one-year rolling correlation coefficient ... (full story)